Skip to main content

NEW YORK (TheStreet) -- NewmontMining  (NEM) - Get Free Report stock is falling by 0.68% to $17.56 in late afternoon trading on Monday, as gold prices slip today. 

Gold hit its lowest prices since early 2010, as the U.S. dollar was strengthened by the expectation that the Federal Reserve will raise interest rates next month, Marketwatch reports.

A strong dollar can weaken the commodities market.

Gold for December delivery dropped by 0.88% to $1066.80 per ounce on the COMEX this afternoon.

"[The] commodity rout continues (copper has gapped down), sending metals and oil lower as the U.S. dollar creeps north on expectations of euro-weakening ECB stimulus next week and a U.S. rate rise midmonth," Mike van Dulken, head of research at AccendoMarkets, said in a note obtained by Marketwatch.

Based in Greenwood Village, CO, Newmont is a mining company focused on gold and copper production and exploration. 

Separately, TheStreet Ratings team rates NEWMONT MINING CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

We rate NEWMONT MINING CORP (NEM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 45.4%. Since the same quarter one year prior, revenues rose by 16.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NEM's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.98 is high and demonstrates strong liquidity.
  • NEWMONT MINING CORP's earnings per share declined by 9.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NEWMONT MINING CORP turned its bottom line around by earning $1.10 versus -$5.21 in the prior year. This year, the market expects an improvement in earnings ($1.14 versus $1.10).
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, NEM has underperformed the S&P 500 Index, declining 5.55% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • You can view the full analysis from the report here: NEM

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.